TL;DR
- Ethereum surpassed $2700, bringing much of the market back into profit and encouraging new retail buying.
- Selling pressure is concentrated between $2400 and $2900, with $2767 as a key level where many may take profits.
- ETH ETFs added $100.7 million over three days, while Uniswap maintains absolute dominance among DEXs.
Ethereum reclaimed its average purchase price after breaking above $2700 on May 14, a strong gain from the $1800 level reached earlier this month. This rise comes from fresh capital inflows that have pushed many investors back into profit territory, often sparking new buyer interest. The average purchase price now sits at $1900, providing a solid base supporting the uptrend.
Ethereum May Face Challenges From Selling Pressure
However, the zone between $2400 and $2900 presents several hurdles. About 2.27 million ETH were bought at an average cost of $2767, making it likely that holders will take profits once this breakeven point is reached. To push towards $3000, Ethereum needs to establish this range as support and convincingly break above the $2800 barrier. Only by turning that resistance into a floor will the path clear for new highs.
Institutional activity has revived, delivering an important boost. Over the past three days, Ethereum ETFs recorded net inflows of $100.7 million, according to Farside Investors. These flows are crucial to driving ETH demand and add buying pressure at key market moments.
Retail Buyers Take the Lead
Meanwhile, trader activity on decentralized exchanges rose 73%, reaching 64,000 daily users. Retail buying supports the price recovery, although monthly volume on DEXs remains steady at $15 billion. Most trades come from small amounts rather than large institutional orders.
On the other hand, Uniswap continues to dominate the DEX market, accounting for 97% of traders and handling close to $13 billion in volume. Its leading position stems from community preference and its ability to withstand new competitors.
Overall, Ethereum shows positive signs: it has regained its average purchase price, attracts institutional capital, and sparks retail interest. Still, critical levels between $2400 and $2900, along with possible selling pressure around $2767, continue to shape its near-term outlook
